Ukraine's farmers struggle to sell harvest amid war, drought

Russian attacks on civilian ships have rendered Ukraine's ports in Odessa essentially unusable, handling only about 10% of the country's agricultural exports. The Ukrainian government is exploring alternate routes, including rail, road, and waterways, as well as seeking an export corridor via Moldova. However, experts warn that these temporary solutions cannot replace the ports and are exacerbating the economic crisis.

Ukrainian farmers have harvested more than 28 million tons of grains and pulses, but a significant portion remains unsold, leading to shortages of cash needed for completing the harvest and planting winter crops. The corn harvest alone could reach 33 million metric tons this year, yet there may be a shortage of storage capacity totaling up to 10 million tons.

Maksym Hopka, an analyst at the Ukrainian Agribusiness Club, estimates that Ukraine's agricultural output in July was 3.7 million metric tons, with grain comprising about 2.7 million metric tons. Prices for food-grade wheat have fallen by 30 to 35%. The Ukrainian government aims to find new export routes, but the Danube's transport capacity is severely affected by extreme heat and drought, and rail and road transport are also constrained.

The Ukrainian Ministry of Agrarian Policy and Food estimates that annual losses from unsold agricultural produce could amount to $20.5 billion. The government is extending a loan program to farmers and has sought aid from the European Commission.